MBFC owners win property tax refund appeal

THE owners of Marina Bay Financial Centre (MBFC) Towers 1 and 2 have won an appeal to recover $6.9 million in property tax refunds, with the Court of Appeal having ruled that vacancy refunds extend to fitting-out periods as well.

In a landmark decision made public yesterday, the appellate court ruled that BFC Development - even after it had secured tenants for a number of units in MBFC - was entitled to vacancy refunds, including for the period while renovation works were being done, because the units were deemed unoccupied, and because neither the owners nor the tenants had obtained any beneficial use of the property.

Even with the removal of the property tax refund provision for vacant properties starting Jan 1, 2014, the ruling means that the property owners can still claim vacancy refunds for the period between Nov 1, 2012 and Dec 31, 2013, including for the fitting-out periods, said Tan Kay Kheng, a partner with WongPartnership, who represents BFC.